The IRS classifies you as either an investor or a trader. (There is also a classification for dealers, but you are not a securities dealer.) Under the tax reform law, investors cannot deduct investment expenses for 2018 through 2025, except for margin interest with some limitations. Traders can deduct investment expenses as business expenses. See the following topic on the IRS web site for a discussion of what makes someone an investor or a trader, and some of the record-keeping requirements for traders.
Topic No. 429 Traders in Securities (Information for Form 1040 or 1040-SR Filers)
There is no precise definition of a trader. The IRS web page describes the factors that are taken into consideration in making the determination, but the descriptions are vague. There are no bright lines or hard and fast rules. If you claim to be a trader, you can expect the IRS to question that claim. Note that you could be considered a trader even if securities trading is not your primary source of income. On the other hand, you could be an investor even if investing is your primary source of income.
If you think you qualify as a trader, you should consult a tax professional before filing your tax return. If you are an investor, you cannot deduct your laptop, home office, or other investment expenses other than margin interest.
